TGR Staff - 11/08/2024
Did you know that the used car market is over twice the size of the new car market in the US? Or that the used car industry has exceeded $2 billion? These are not just staggering facts but also a testament to the potential savings that await you. As the average age of cars on the road is set to increase, preloved motors will far outweigh new motors, making the used car market a financially savvy choice. This means you can make a smart investment and save a significant amount of money by choosing a used car.
Dipping your toes into the used car market can be a tricky experience. Because let's be honest; the first thing from many people that pops into their heads when you mention used auto dealerships is bad deals, dodgy vehicles, and less than satisfactory experience.
However, this is not always true. And if your idea of buying used or, rather, not buying used is based upon some misconceptions, then it's highly likely you're missing out on getting a fantastic deal on your next set of wheels by avoiding the used car market altogether. That being said, there are some things you'll need to consider, and you will need to be on your toes when diving into the used car market.
While the majority of used car sales happen in the $5 to $33k price range, a used car is one with more than one previous registered owner and more than just delivery miles on the clock. This means prices can run for a few hundred dollars, not exceeding $33k, depending on the age, make, model, and specs.
So, what do you need to know now when considering a used car for your next motor? These dos and don'ts can steer you well.
Do Know Your Needs
The golden rule of buying any car is to know what you need from it, not just what you want. This understanding empowers you to make a decision that aligns with your lifestyle and preferences, whether upgrading for a bigger family, off-road adventures, or city driving. Knowing your needs is the key to making a confident and informed decision when buying a used car.
All of these needs and concerns should be at the forefront of your purchase to facilitate your decision-making about buying a used car.
Don't Trade In A Car Worth Less Than You Owe on It
Basically, if you have a car you're paying back a finance or lease agreement on, and you want to trade it, you need to be sure the car is worth more than what is left outstanding. This is because if you owe $4,000 on the car and you will only get $3,000 back, you will still be left with a $1,000 shortfall, which is known as 'negative equity. ' You won't get any type of discount from the trade-in for paying for your new car. If you want to avoid leaving any negative equity, always wait to trade in until you're sure this isn't a factor.
Do Your Homework
This means the dealer or seller you're looking to purchase from, the manufacturer, the model, and the specs of the options you're considering buying. You need to know as much as possible so you can be more informed when you go to view or test it. You want to know the reliability, the safety features, and the average cost of owning it; you need to know how many miles on the clock, its service or repair history, the previous owners' condition, etc.
Read reviews, check out online forums with other current and previous owners, and dig up as much information as you can to facilitate a good deal and avoid getting a dud.
Don't Rely on The Seller
Relying on the seller alone to help you uncover the information will result in you buying a car you will only know the good things about. They are there to make the sale, and while not all used car dealers are unscrupulous, they won't have all the information to hand and will only give you the glossed-over highlights of the car or truck you're considering.
Instead of relying on them to tell you what you need to know, arm yourself with the information. Then, you can see if the information you are being told correlates with your research and gives you an arsenal full of questions to ask, too.
Do Go For A Test Drive
Always, always, always take any vehicle you're considering buying for a test drive. This way, you can get a better feel for what it drives like and how you feel driving it when it's out on the road. While it might tick all the boxes and meet all of your requirements, if it doesn't handle as well as you expected it to, or you don't feel right driving it, then it's not the right vehicle for you.
Try taking it out in different situations, e.g., busy highways, tight roads, or even into a parking lot, to see how easy it is to park. Use the vehicle in scenarios as you would in your daily life to ensure you can enjoy driving it.
Don't Fall for Offers
Many sales and proteins on autos are skewed towards the dealership, so avoid falling for offers or promotions that feel too good to be true, and don't be swayed into making a decision to take advantage of a good offer. Chances are the small print won't be as enticing as the eye-catching offer, and it might be a worse deal than you think. Always take your time regarding offers; don't be pushed into taking advantage of a time-sensitive discount. Always read the small print so you know what to expect in terms of pricing and payments for any finance agreements you take out.
Do Negotiate Separately
Negotiating a deal on the vehicle you choose isn't a one-time thing. It's a series of smaller deals that come together to form a great offer. So, while it's expected you haggle on the price, that's not the be-all and end-all. You need to approach the price first, then the repayment terms, which include the interest rate, the length of the loan, and any additional fees, extras, sweeteners, etc., if possible. Do them step by step, not as one package, so you can get the best offer possible for your purchase.
Don't Get Talked Into What You Don't Need
Be prepared for the fact that slick salespeople will have a sales pattern and targets. They roll this out to everyone they talk to to get you to make a sale with them. This can often mean confusing you with extras like extended warranties, paint protection, or additional features that might not be suitable for you to make the sale. Be aware of this and be alert during negotiations to avoid getting sucked into spying for things you do need and ruining a good deal.
Buying a used car can unlock amazing deals and prices and help you to get the auto you want for a better price than buying it brand new. While there are indeed pitfalls to purchasing used cars, knowing what you are doing, what to look out for, and how to spot a good deal can help you navigate the used car market and find the right vehicle or the right price for you. These dos and don'ts of buying a used car can enable you to cover what you need to do to help you out.
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